Egypt will open its crossing with the Gaza Strip this weekend, Cairo's interim military government has announced.

The move will significantly ease a four-year blockade on the Hamas-ruled territory, but sets up a potential conflict with Israel.

Egypt's official Middle East News Agency (Mena) said the Rafah border crossing would be opened from Saturday daily between 9am and 9pm, except on Fridays and holidays.

This gives Gazans a way to freely enter and exit their territory for the first time since 2007, when the Islamist militant group Hamas seized control of the territory from its Palestinian rivals Fatah, and Israel and Egypt closed their crossings.

Israel's crossings are more significant, since these handle most non-smuggled cargo. A year ago Israel eased its restrictions on cargo entering Gaza, but it still severely limits entry and exit of Gazans through its northern crossing into Israel.

Mena said the decision to open the Rafah crossing was part of efforts "to end the status of the Palestinian division and achieve national reconciliation".

The statement said that rules in effect before the blockade would be reinstated. At that time, European observers had a role in operating the crossing and Israel monitored people and cargo to keep out militants and weapons.

The Egyptian foreign minister Nabil Elaraby told the Qatar-based satellite channel al-Jazeera last month that the closure of Rafah crossing was about to end, calling the original closure decision "a disgusting matter".

Gazans have circumvented the blockade by operating hundreds of smuggling tunnels under the 9-mile (15km) border with Egypt. The tunnels have been used to bring in all manner of products, as well as people.

The Israeli government charges Hamas with using the tunnels to also import weapons in the Gaza Strip, including rockets that can reach main population centres in Israel.

• This article was amended on 26 May 2011. In the original, missing words produced a sentence reading: The Egyptian foreign minister Nabil Elaraby told the Qatar-based satellite channel al-Jazeera last month that the closure of Rafah crossing was about to end, calling the decision "a disgusting matter". The lost words have been restored.